Information about procurement thresholds

Set out below, are the threshold levels to apply for the purposes of The Public Contract Regulations 2015, Utilities Contract Regulations 2016, Concession Regulations 2016 and Defence and Security Public Procurement Regulations 2011, with effect from January 2022.


From January 2022 when calculating the estimated value of the contract to determine whether the regulations apply, the contract value estimation should be inclusive of VAT (where applicable).This change in practice is a requirement of the UK's independent membership of the GPA. Procurers should calculate the estimated value of a contract based on the total amount payable including VAT without making a deduction for any available VAT recovery.

Public contracts

The Public Contracts Regulations 2015 applies to contracting authorities including, amongst others, government departments, local authorities and NHS authorities and trusts.

  Supplies Services  Works
Central government authorities, as listed in Schedule One £138,760 £138,760 £5,336,937
Other public sector contracting authorities £213,477 £213,477 £5336,937
Light touch regime for services N/A £663,540 N/A
Subsidised services contracts N/A £213,477 N/A 
Small lots £70,778 £70,778 £884,720

Utilities contracts

The Utilities Contracts Regulations 2016 applies to certain utility companies operating in the energy, water and transport sectors.

  Supplies Services  Works
All sectors £426,955 £426,955 £5,336,937
Small lots £70,778 £70,778 £884,720

The Concession Contracts Regulations

The threshold for all concession contracts is £5,336,937.

The Defence and Security Public Contract Regulations

  Supplies Services Works
All sectors £426,955 £426,955 £5,336,937
Small lots £70,778 £70,778 £884,720

Cabinet Office Procurement Policy Note 10/21

For more information about the new threshold levels (from 1st January 2022 onwards) visit the Cabinet Office Procurement Policy Note 10/21

 

 

 

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